a comment cross-posted from the Isaac Brock Society blog
When Law Becomes a Substitute for Morality- & is Used to Punish as Well Welcome 2 the World of #PFICs https://t.co/ak1j9Q87Mu No more #CBTax pic.twitter.com/uPTp3ay9gm
— Citizenship Taxation (@CitizenshipTax) March 12, 2017
@Bubblebustin
Excellent sentiment:
You know what I think is immoral? A government’s sudden enforcement of laws that it chose to conveniently ignore in the past. A lot of the problems associated with illegal immigration and Citizenship-Based Taxation could have been avoided if the US government hadn’t been negligent in enforcing its own laws. It borders on entrapment really, but “the law is the law”, and until the laws change any government can pick it up, dust it off and enforce it to its fullest degree.
Actually you are being far too kind to the U.S. government and ascribing a level of respect that it (particularly the former Obama administration) doesn’t deserve.
Take the case of applying the PFIC rules to Canadians who are/were long term holders of Canadian mutual funds. Basically, the longer the holding period the higher the confiscation just for the crime of retirement planning in Canada. (Your money should be in the Homeland.) Both the rules and the application of the rules are immoral, criminal and result in the financial rape of Canadians attempting to save for retirement.
But, it’s far worse because the IRS was not even aware of the PFIC rules until 2009 (thank the OVDP program). But, once the IRS discovered PFIC they began retroactively applying the punitive form of taxation to something that:
1. Nobody could have imagined existed
2. The IRS didn’t even know existed
3. The U.S. tax compliance industry didn’t even know existed.
Think of it. They applied rules to Americans abroad that THEY THEMSELVES DID NOT EVEN KNOW EXISTED!
But, did that stop the tax compliance industry and the IRS? Hell no.
They simply revelled in the:
“Joy Of Discovering A New Way To Rape and Pillage The Economies and Citizens Of Other Nations!”.
It’s the American way!!!!!
One takeaway from this is that you need to be very very careful about what information you give to tax preparers, etc. and what tax preparers you choose. The compliance industry is the enforcer (with pleasure) of these rules.
Americans abroad must choose between:
1. Obeying these horrible unjust “laws” which result in their financial destruction; or
2 Doing what they need to do to save themselves.
There is NO possibility of existing as “U.S. tax compliant Americans abroad” in such a brutal, immoral, dishonest and corrupt system.
All Roads Lead To Renunciation” – the only question is which road you personally will take.